E-way bills have been made necessary for inter-state transportation of products worth over Rs 50,000 under the goods and services tax (GST) system since April 2018. Gold, on the other hand, is exempt. Businesses and transporters who use the electronic way (e-way) bill system must present the e-way bill if asked by a GST inspector.
With the integration of the e-way bill (EWB) system with FasTag and RFID, GST authorities now have real-time data about commercial vehicle movement on roads, which will aid in live surveillance of such vehicles and check GST evasion. Tax officers’ e-way bill mobile application now has additional capabilities that will give them real-time tracking data on E-way bills and vehicles, allowing them to catch tax evaders who are abusing the e-way bill system.
On a daily basis, the e-way bill system receives around 25 lakh goods vehicle movements from around 800 tolls. The combination of e-way bills, RFID, and FasTag will allow tax officials to monitor e-way bill compliance in real-time, assisting in the prevention of income leakage by identifying cases of EWB recycling and non-generation in real-time.
Tax collectors may now view information on vehicles that have traveled through the designated tolls in the last several minutes without paying the tolls with e-way bills. It is also possible to see vehicles carrying vital goods unique to the state that have passed the specified toll.
This report will show any suspect vehicles and vehicles of EWBs created by suspicious taxpayer GSTINs that have passed the designated toll in near real-time. These reports can be used by officers to perform vigilance and improve the effectiveness of the activity. These reports can also be used by officers in the audit and enforcement department to uncover fraudulent transactions such as bill trading and EWB recycling.
Online real-time vehicle and commodities tracking would go a long way toward catching tax evaders. This smartphone application for tax authorities would allow them to track down all of the parties engaged in the illegal removal of goods. The e-way bill system has now been merged with the FasTag and RFID systems, and MIS (Management Information Systems) reports from the same will be made accessible on the officer’s mobile app. CBIC has previously expressed its goal to further digitize the process of enforcing e-way bill requirements under the GST legislation.
The government has linked RFID/FasTag with the e-way bill system as of January 1, 2021, and the transporter is obliged to carry an RFID tag in his vehicle, with information of the e-way bill created for products being transported by the vehicle being uploaded into the RFID. The information supplied into the device is posted to the government portal as the vehicle passes the RFID Tag reader on the highway. Revenue officials then use the information to verify the supplies made by a GST-registered individual.
To enhance tax compliance, the government has begun prohibiting the creation of EWB bills for GST registered taxpayers who have not completed a GSTR-3B return for the previous two months. In addition, the government has made it impossible to generate numerous EWBs on a single invoice. If an EWB is produced once with an invoice number or document number, no one else can produce another EWB with the same invoice number.
Furthermore, the e-way billing system now allows for distance computation based on PIN numbers. Based on PIN numbers, the system will automatically compute the distance between the source and destination.
The integration of the e-way bill (EWB) system with FASTag and RFID would enable GST authorities to track real-time data about commercial vehicle (CV) travel on roads. The combination of e-way bills, RFID, and FASTag will allow businesses to monitor e-way bill compliance in real-time and help avoid revenue leakage by identifying incidents of e-way bill recycling in real-time.